Bank of Nova Scotia (NYSE:BNS) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Bank of Nova Scotia (NYSE:BNS) (TSE:BNS) issued its earnings results on Tuesday. The bank reported $1.48 earnings per share for the quarter, topping analysts’ consensus estimates of $1.42 by $0.06, Zacks reports. The firm had revenue of $7.40 billion during the quarter, compared to analyst estimates of $6.99 billion. Bank of Nova Scotia had a net margin of 10.60% and a return on equity of 12.10%. Bank of Nova Scotia’s revenue for the quarter was up 2.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.76 earnings per share.

Here are the key takeaways from Bank of Nova Scotia’s conference call:

• Scotiabank reported adjusted earnings of CAD 2.7 billion (CAD 2.05 EPS) and a 13% ROE, up 120 bps year‑over‑year, with a CET1 ratio of 13.3% after share repurchases — management says they are tracking ahead of plan toward a 14%+ medium‑term ROE target.
• Credit costs were elevated with all‑bank PCLs of ~CAD 1.2 billion and impaired PCLs at 58 bps, driven mainly by Canadian retail and three GBM files; allowances increased to ~CAD 7.2 billion and impaired PCLs are expected to remain elevated near term.
• Revenue and margin momentum continued — revenue +11% YoY, net interest income +13% and NIM expansion of ~27 bps — while productivity improved (productivity ratio down ~200 bps) and the bank delivered positive operating leverage across segments.
• Management is prioritizing technology and AI investments to drive efficiency (Ask AI processed > 450,000 queries in Q1 and an AML AI pilot cut alert volumes by 37%), alongside capital deployment focused on organic growth then buybacks (NCIB renewal expected).

Bank of Nova Scotia Trading Up 0.2%

Shares of Bank of Nova Scotia stock traded up $0.19 on Wednesday, reaching $75.57. The company had a trading volume of 1,137,969 shares, compared to its average volume of 1,983,189. The firm has a market cap of $93.16 billion, a price-to-earnings ratio of 18.80, a P/E/G ratio of 1.03 and a beta of 1.11. The company has a debt-to-equity ratio of 0.70, a current ratio of 1.04 and a quick ratio of 1.04. The firm’s 50-day moving average price is $74.50 and its two-hundred day moving average price is $68.25. Bank of Nova Scotia has a 1 year low of $44.09 and a 1 year high of $78.28.

Bank of Nova Scotia Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 28th. Stockholders of record on Tuesday, April 7th will be paid a $1.10 dividend. This represents a $4.40 annualized dividend and a dividend yield of 5.8%. The ex-dividend date of this dividend is Tuesday, April 7th. Bank of Nova Scotia’s dividend payout ratio (DPR) is presently 79.85%.

Key Headlines Impacting Bank of Nova Scotia

Here are the key news stories impacting Bank of Nova Scotia this week:

• Positive Sentiment: Royal Bank of Canada raised its price target on BNS to $106 (from $97) and kept a “sector perform” rating — the new target implies significant upside and likely provides near‑term support for the stock. RBC price target raise
• Positive Sentiment: Company financial release/MarketBeat coverage: Scotiabank reported quarterly revenue of $7.40B and EPS that beat consensus (MarketBeat cites $1.48 vs $1.42), with revenue up ~2.9% YoY — solid top‑line and margin metrics that can support sentiment. Press Release / Slide Deck
• Positive Sentiment: Coverage noting growth across divisions highlights operational momentum that could attract momentum/income investors. Earnings growth across divisions
• Neutral Sentiment: Company provided an earnings‑call presentation and slides — useful for investors doing deeper diligence but not a discrete positive/negative catalyst by itself. Earnings Call Presentation
• Neutral Sentiment: Analyst/opinion pieces (e.g., Zacks) flag BNS as a momentum candidate — may attract certain investors but doesn’t change fundamentals immediately. Momentum writeup
• Negative Sentiment: Seeking Alpha note: Q1 was mixed — revenue missed while EPS/ROE improved; management reiterated targets but valuation multiples look cyclically stretched and the ~4.27% dividend may offer limited downside protection — a downside risk for investors worried about a market pullback. Valuation concern analysis
• Negative Sentiment: Some transcripts/coverage reported an EPS miss (one outlet cited $1.36 vs $1.42), creating noise and short‑term confusion in the market — mixed earnings reads can pressure the stock until figures and reconciliations are clarified. Earnings call transcript

Wall Street Analysts Forecast Growth

Several research firms have commented on BNS. Raymond James Financial started coverage on shares of Bank of Nova Scotia in a report on Tuesday, November 25th. They set an “outperform” rating for the company. Royal Bank Of Canada increased their price target on Bank of Nova Scotia from $97.00 to $106.00 and gave the company a “sector perform” rating in a research note on Wednesday. Finally, Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Bank of Nova Scotia in a research note on Monday, December 29th. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the stock. According to MarketBeat.com, Bank of Nova Scotia has a consensus rating of “Hold” and an average price target of $106.00.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of BNS. FIL Ltd raised its stake in shares of Bank of Nova Scotia by 49.5% in the fourth quarter. FIL Ltd now owns 16,489,540 shares of the bank’s stock valued at $1,216,157,000 after acquiring an additional 5,461,052 shares during the period. AQR Capital Management LLC grew its holdings in Bank of Nova Scotia by 3,120.1% during the 4th quarter. AQR Capital Management LLC now owns 3,556,295 shares of the bank’s stock valued at $262,284,000 after purchasing an additional 3,445,856 shares during the last quarter. Zurich Insurance Group Ltd FI bought a new position in Bank of Nova Scotia during the 3rd quarter valued at about $138,394,000. The Manufacturers Life Insurance Company raised its position in Bank of Nova Scotia by 27.5% in the 4th quarter. The Manufacturers Life Insurance Company now owns 6,969,396 shares of the bank’s stock worth $515,094,000 after purchasing an additional 1,505,221 shares during the period. Finally, BCV Asset Management Inc. bought a new stake in Bank of Nova Scotia in the fourth quarter worth about $71,149,000. 49.13% of the stock is owned by hedge funds and other institutional investors.

Bank of Nova Scotia Company Profile

Bank of Nova Scotia, commonly known as Scotiabank, is a Canadian multinational banking and financial services company founded in 1832 and headquartered in Toronto, Ontario. It is one of Canada’s largest banks and provides a broad range of financial services to retail, commercial, corporate and institutional clients. The bank combines a domestic Canadian franchise with an extensive international presence to serve customers across multiple markets.

Scotiabank’s core activities include personal and commercial banking, wealth management, corporate and investment banking, capital markets, and global transaction banking.